Comments on: SEC brings another case against naked short sellers

By: Hedge funds scurry to sever ties with SAC Capital | Deep Capture: exposing the crime of naked short selling

Wed, 23 Dec 2009 18:48:16 +0000

[...] Had these been small hedge funds acting illegally, the SEC’s version of civil justice would have most certainly been both swift and sternly-worded. [...]

By: Citizen Positive

Citizen Positive — Fri, 13 Nov 2009 02:53:14 +0000

Keep up the good research. We’ll all march if they don’t listen.

I’m hopeful of some real change. This administration can still do it.

By: Huck

Huck — Mon, 09 Nov 2009 12:37:12 +0000

So, the question is can all of us that lost money invested in the targeted company’s persue civil actions against rhino et al now?

By: ravenseye

ravenseye — Sat, 07 Nov 2009 20:41:59 +0000

Bravo Judd, well done, thx! I especially appreciate the clarification about the diff rhinos & the wrist slap mention verified by a search of rhino regulatory actions at the sec website which is very informative, as are you!

Corrected – Conforming to Federal Register Version
SECURITIES AND EXCHANGE COMMISSION 17 CFR PARTS 200 and 242 [Release No. 34-60388; File No. S7-30-08] RIN 3235-AK22 Amendments to Regulation SHO
AGENCY: Securities and Exchange Commission. ACTION: Final rule….
EFFECTIVE DATE: July 31, 2009…..
http://www.sec.gov/rules/final/2009/34-60388.pdf
17 In 2003, the Commission settled a case against certain parties relating to allegations of manipulative short selling in the stock of a corporation. The Commission alleged that the defendants profited from engaging in massive “naked” short selling that flooded the market with the stock, and depressed its price. See Rhino Advisors, Inc. and Thomas Badian, Lit. Rel. No. 18003 (Feb. 27, 2003); SEC v. Rhino Advisors, Inc. and Thomas Badian, Civ. Action No. 03 civ 1310 (RO) (S.D.N.Y); see also Exchange Act Release No. 48709 (Oct. 28, 2003), 68 FR 62972, 62975 (Nov. 6, 2003) (“2003 Regulation SHO Proposing Release”) (describing the alleged activity in the case involving stock of Sedona Corporation); 2004 Regulation SHO Adopting Release, 69 FR at 48016, n.76; Exchange Act Release No. 58774 (Oct. 14, 2008), 73 FR 61666 (Oct. 17, 2008) (“Anti-Fraud Rule Adopting Release”).

61666 Federal Register / Vol. 73, No. 202 / Friday, October 17, 2008 / Rules and Regulations
http://www.sec.gov/rules/final/2008/34-58774fr.pdf
SECURITIES AND EXCHANGE
COMMISSION
17 CFR Part 240
[Release No. 34–58774; File No. S7–08–08]
RIN 3235–AK06
‘‘Naked’’ Short Selling Antifraud Rule
AGENCY: Securities and Exchange
Commission.
ACTION: Final rule….
…8 In 2003, the Commission settled a case against
certain parties relating to allegations of
manipulative short selling in the stock of a
corporation. The Commission alleged that the
defendants profited from engaging in massive
‘‘naked’’ short selling that flooded the market with
the stock, and depressed its price. See Rhino
Advisors, Inc. and Thomas Badian, Lit. Rel. No.
18003 (Feb. 27, 2003); see also SEC v. Rhino
Advisors, Inc. and Thomas Badian, Civ. Action No.
03–civ–1310 (RO) (S.D.N.Y) (Feb. 26, 2003); see
also Securities Exchange Act Release No. 48709
(Oct. 28, 2003), 68 FR 62972, 62975 (Nov. 6, 2003)
(‘‘2003 Regulation SHO Proposing Release’’)
(describing the alleged activity in the settled case
involving stock of Sedona Corporation); 2004
Regulation SHO Adopting Release, 69 FR at 48016,
n.76. …

a search of rhino regulatory actions at the sec website is very informative

By: Anonymous

Anonymous — Fri, 06 Nov 2009 06:33:47 +0000

It’s like when Mark Valentine, the kid, made $750 million dollars clear after all costs, was arrested by the FBI in Operation Bermuda Short in 2000

http://network.nationalpost.com/np/blogs/fpposted/VALENTINE.jpg

then got to keep all of his money and serve a few months of house arrest in his Florida mansion before returning to his Toronto mansion.

The running joke in the industry is that when the brokerage he owned (Thompson Kernaghan) went bankrupt for screwing everyone, he wrote off his loss and collected $15 million in tax refunds from the Canadian tax payers because his hundreds of offshore accounts where the screwing originated were anonymous.

The bottom line is it isn’t so bad to pay a $45,000 speeding ticket if the crime fills your bank account with money.

Investors are programmed to think “I lost money because the economy is bad” without understanding that their money went into someone else’s wallet.

If they could just understand the scams that transfer money illegally from their wallet to someone else’s, they might, just finally get pzzed off.

By: Fred

Fred — Fri, 06 Nov 2009 05:11:22 +0000

harveydawabbit

Looks to me you have a valid lawsuit against WF for recovery of the value of your shares on any day you could not access them

By: harveydawabbitt

harveydawabbitt — Fri, 06 Nov 2009 04:10:34 +0000

thank you judd i wanted to know because of what happened to me with wells fargo.
there was a reverse split on gold stock i bought into and wells fargo suspend my access to this stock and when i called them they told me i did not own the stock. my question was then if i dont own what is it doing in my account and what are these documents you sent me in the mail detailing my purchase?
all i could do is watch thisinvestment go from 154k to zero
so it would be interesting to know all their involvement in trading of nefarious nature. i cant give this up with wells fargo what they did to me was wrong. not only did they STEAL my money they caused us to file bankruptcy as a result of that loss not to mention the other aspects that this has caused me personally and my family.the last letter i got from wf was “as far as they are concerned the matter is closed” well i replied with yet another complaint to the sec with a letter saying i will pursue this till the day i die. also the main reason i am taking computer forensics. i intend to get to the bottom of this one way or another.
they cannot treat people is this manner and get away with it wit impunity.
thank you dc team for all your hard work.

shawn (harveydawabbitt)

By: Judd Bagley

Judd Bagley — Fri, 06 Nov 2009 02:30:52 +0000

Shawn,
This appears on page six of the administrative action:

During the relevant period, FSTG engaged in a large volume of reverse conversions and reset transactions in numerous threshold securities, including, but not limited to, iMergent, Inc., American Home Mortgage Investment Corp., and NovaStar Financial, Inc. As a result of FSTG’s repeated violation of Regulation SHO’s close-out requirement, it received ill-gotten gains of $45,000.

During the relevant period, Rhino engaged in a large volume of reverse conversions and reset transactions in numerous threshold securities, including, but not limited to, Medis Technologies Ltd., NovaStar Financial, Inc., and USANA Health Sciences, Inc. As a result of Rhino’s repeated violation of Regulation SHO’s close-out requirement, it received ill-gotten gains of $350,000.

By: Paying On Time - Credit Cards » SEC brings another case against naked short sellers

Fri, 06 Nov 2009 02:00:16 +0000

[...] Go to Source Related Posts:Congress prepares to bypass impotent SECSam Antar: PS And is that Mr. Goniff?Did Hayman Capital Help Destroy Bear Stearns? [...]

By: harveydawabbitt

harveydawabbitt — Fri, 06 Nov 2009 01:57:13 +0000

what would it take to show a list of the companies these folks illegally shorted?
trading tapes or something?
might be useful to show who was hit by these folks and see if any of our investments were a part of it.

just a babblin on

shawn